| Metric (USD Million) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| TV Media             | 5,193  **[0000813828-23-000015_para-20230331.htm:35]**  | 5,157  **[0000813828-23-000026_para-20230630.htm:21]**  | 4,567  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-23-000033_para-20230930.htm:46]**  | N/A     | 5,231  **[0000813828-24-000020_para-20240331.htm:21]**  | 4,271  **[0000813828-24-000053_para-20240630.htm:53]**  | 4,298  **[0000813828-24-000079_para-20240930.htm:33]**  |
| Direct-to-Consumer   | 1,510  **[0000813828-23-000015_para-20230331.htm:35]**  | 1,665  **[0000813828-23-000026_para-20230630.htm:21]**  | 1,692  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-23-000033_para-20230930.htm:46]**  | N/A     | 1,879  **[0000813828-24-000020_para-20240331.htm:21]**  | 1,880  **[0000813828-24-000053_para-20240630.htm:53]**  | 1,860  **[0000813828-24-000079_para-20240930.htm:33]**  |
| Filmed Entertainment | 588  **[0000813828-23-000015_para-20230331.htm:35]**    | 831  **[0000813828-23-000026_para-20230630.htm:21]**    | 891  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-23-000033_para-20230930.htm:46]**    | N/A     | 605  **[0000813828-24-000020_para-20240331.htm:21]**    | 679  **[0000813828-24-000053_para-20240630.htm:53]**    | 590  **[0000813828-24-000079_para-20240930.htm:33]**    |
| Eliminations         | (26)  **[0000813828-23-000015_para-20230331.htm:35]**   | (37)  **[0000813828-23-000026_para-20230630.htm:21]**   | (17)  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-23-000033_para-20230930.htm:46]**   | N/A     | (30)  **[0000813828-24-000020_para-20240331.htm:21]**   | (17)  **[0000813828-24-000053_para-20240630.htm:53]**   | (17)  **[0000813828-24-000079_para-20240930.htm:33]**   |
| Total Revenue        | 7,265  **[0000813828-23-000015_para-20230331.htm:35]**  | 7,616  **[0000813828-23-000026_para-20230630.htm:21]**  | 7,133  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-23-000033_para-20230930.htm:46]**  | N/A     | 7,685  **[0000813828-24-000020_para-20240331.htm:21]**  | 6,813  **[0000813828-24-000053_para-20240630.htm:31]**  | 6,731  **[0000813828-24-000079_para-20240930.htm:33]**  |

eafe6d3a113a99cfc0f25eddfa55be2a53722d18e064af0168da3e489996ecfc

| Metric (Unit: Million USD) | 2022 (Full Year) | 2023 (Full Year) | Q1 2024 |
|----------------------------|------------------|------------------|---------|
| United States Revenue      | **$24,412**  **[0000813828-23-000005_para-20221231.htm:158]**     | **$23,962**  **[0000813828-24-000007_para-20231231.htm:148]**     | N/A     |
| International Revenue      | **$5,742**  **[0000813828-23-000005_para-20221231.htm:158]**      | **$5,690**  **[0000813828-24-000007_para-20231231.htm:148]**      | N/A     |
| Total Revenue              | **$30,154**  **[0000813828-23-000005_para-20221231.htm:158]**     | N/A              | **$7,685**  **[0000813828-24-000020_para-20240331.htm:37]**  |

33004fa2cb12567a7d3f179e0a8c4941209866ac3488593eeb5f2fe1ccaae0c8

ea02bf47eea2d8c5ecf97eef23171e1e1680ffe7598865d69425a6981a7460b6

Global Paramount+ Subscribers

dc085cb3cb44e1295bb457bdbf9fbae4e7392f502aa561cee0b23cdab96cce2b

| Metric (Unit: Subscribers, Scale: Millions) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Global Paramount+ Subscribers               | 56 **[0001193125-23-040704_d441638dex99.htm:2]** **[0001193125-23-040704_d441638dex99.htm:1]** | 60 **[0000813828-23-000015_para-20230331.htm:36]** **[PARA_3249135_0]** **[0001193125-23-135025_d238168dex99.htm:1]** | 60.7 **[0000813828-23-000026_para-20230630.htm:43]** **[0000813828-23-000026_para-20230630.htm:44]** | 63.4 **[0000813828-23-000033_para-20230930.htm:49]** **[0000813828-23-000033_para-20230930.htm:49]** | 67.5 **[0000813828-24-000007_para-20231231.htm:57]** **[0000813828-24-000007_para-20231231.htm:57]** | 71.2 **[0000813828-24-000020_para-20240331.htm:39]** **[0000813828-24-000020_para-20240331.htm:39]** **[0001193125-24-122356_d788256dex99.htm:0]** | 68.4 **[0000813828-24-000053_para-20240630.htm:56]** **[0000813828-24-000053_para-20240630.htm:56]** | 71.9 **[0000813828-24-000079_para-20240930.htm:58]** **[0000813828-24-000079_para-20240930.htm:58]** |

2e3b30991b0216e41078a5d76eea3c6cf497869c6dabfa6e975f0dcc0316551a

1eaa3b0c33dde480dfa18fbb2dd7459c0aaf0a80daa3d635d4c10521fdb07d57

Paramount Global is a leading global media, streaming, and entertainment company that creates premium content and experiences for audiences worldwide. The company operates through three main segments: TV Media, Direct-to-Consumer, and Filmed Entertainment, offering a wide range of entertainment products and services **[0000813828-24-000007_para-20231231.htm:94]** **[0000813828-24-000053_para-20240630.htm:10]** **[0000813828-24-000020_para-20240331.htm:8]** **[0000813828-24-000079_para-20240930.htm:55]** **[0000813828-24-000020_para-20240331.htm:37]**. Paramount Global's offerings include broadcast operations, streaming services, and film production, catering to diverse audiences across the globe **[0000813828-24-000007_para-20231231.htm:94]** **[0000813828-24-000053_para-20240630.htm:10]** **[0000813828-24-000020_para-20240331.htm:8]** **[0000813828-24-000079_para-20240930.htm:55]** **[0000813828-24-000020_para-20240331.htm:37]**. The company is known for its popular brands like CBS, MTV, Nickelodeon, and Paramount Pictures **[0000813828-24-000007_para-20231231.htm:94]** **[0000813828-24-000053_para-20240630.htm:10]** **[0000813828-24-000020_para-20240331.htm:8]** **[0000813828-24-000079_para-20240930.htm:55]** **[0000813828-24-000020_para-20240331.htm:37]**.

1. **TV Media** - Operates broadcast operations such as the CBS Television Network and domestic and international cable networks like MTV and Nickelodeon. Includes television studio operations and digital properties like CBS News Streaming and CBS Sports HQ.
2. **Direct-to-Consumer** - Comprises domestic and international streaming services, including Paramount+, Pluto TV, and BET+. Showtime Networks' domestic premium subscription streaming service was discontinued as a standalone service for new subscribers in 2023 and will no longer be available after April 30, 2024.
3. **Filmed Entertainment** - Encompasses film production through Paramount Pictures, Paramount Players, and Paramount Animation, along with other studios like Nickelodeon Studio and Miramax.

88f593e05acb20d6782f658def05d696ebee2811423f077f442ecfd53009cb55

1. With the planned reduction of approximately **15% of your U.S.-based workforce** to achieve **$500 million** in annual run rate cost savings, how will you ensure that these cuts do not negatively impact your ability to produce **best-in-class content** and maintain competitiveness during the interim period before the Skydance transaction closes?

2. Given the exit from the **Tving partnership in South Korea** and your intention to explore strategic partnerships to accelerate profitability in international markets, can you elaborate on your specific plans for the **international streaming footprint** of Paramount+ and how these might impact both **scale and profitability**?

3. The recent **$6 billion noncash goodwill impairment charge** was attributed to declines in the linear affiliate marketplace and the valuation implied by the Skydance transaction; can you provide more detail on the specific indicators that led to this charge and how it affects your strategy for the **cable network reporting unit**?

4. As **cord-cutting accelerates** and more content shifts to streaming platforms like Paramount+, how do you plan to address concerns from **CBS affiliates** regarding the value they receive from national programming and the potential pressure to **moderate or decline reverse compensation fees**?

5. Considering that the **Direct-to-Consumer segment** was profitable in Q2 but is expected to incur losses in Q3 and Q4 due to content expenses and seasonality, what are the key factors that give you confidence in achieving **Paramount+ domestic profitability in 2025** on a full-year basis, and what challenges could potentially impact this timeline?

9191528aff4985e77c3e01b83037af50be12ee296acd6507f7d8ab75a0fdcd78

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

20228535aa10a6c28c361a49b83e6c7b495849680aea154a211f9273d6e5c01d

United States

International

- United Kingdom

- Other Europe

- Canada

- Asia

- Australia

- Other

Total Revenue

cf3b26ddc79e2f532b05c404f31f1bb7cb9b9b1fce9fbb44691faca1f76ba582

- **Broadcast and cable networks** - Compete for distribution and audiences  **[0000813828-24-000007_para-20231231.htm:12]** .
- **Streaming services** - Compete for audiences, creative talent, and content distribution  **[0000813828-24-000007_para-20231231.htm:12]** .
- **Film and television studios** - Compete for creative talent and content distribution  **[0000813828-24-000007_para-20231231.htm:12]** .
- **Production groups and independent producers** - Compete for creative talent and content distribution  **[0000813828-24-000007_para-20231231.htm:12]** .
- **Television stations and station groups** - Compete for distribution of content  **[0000813828-24-000007_para-20231231.htm:12]** .
- **Social media, websites, apps, and other online experiences** - Compete for audiences and advertising revenues  **[0000813828-24-000007_para-20231231.htm:12]** .
- **Radio programming and print media** - Compete for audiences and advertising revenues  **[0000813828-24-000007_para-20231231.htm:12]** .
- **Video games, sports, travel, and outdoor recreation** - Compete for audiences and consumer spending  **[0000813828-24-000007_para-20231231.htm:12]** .

59dd10c73b2373d274eba9b202d5b9accacd3cc66f4f46e4aba58958a697ba25

6e7d21384c4ec2e96e77ae979abd7aee8d25767e597f2f21d077e95bcc6f25d9

| Name                | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|---------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert M. Bakish    | President and Chief Executive Officer, Director                          | December 2019    | Robert M. Bakish has been serving as the President and CEO, as well as a member of the Board of Directors of Paramount Global since December 2019. Previously, he was the President and CEO of Viacom Inc.  **[0000813828-24-000007_para-20231231.htm:16]** **[0001193125-24-105026_d558817ddef14a.htm:34]** **[0001193125-24-093320_d558817dpre14a.htm:34]** .                          |
| Naveen Chopra       | Executive Vice President, Chief Financial Officer                        | August 10, 2020  | Naveen Chopra has been the Executive Vice President, CFO of Paramount Global since August 10, 2020. He previously served as Vice President and CFO of Amazon Devices & Services  **[0000813828-24-000007_para-20231231.htm:16]** **[0000813828-23-000005_para-20221231.htm:18]** .                                                        |
| Christa A. D’Alimonte | Executive Vice President, General Counsel and Secretary                  | December 2019    | Christa A. D’Alimonte has been serving as the EVP, General Counsel, and Secretary of Paramount Global since December 2019. She joined Viacom in 2012  **[0000813828-24-000007_para-20231231.htm:16]** **[0000813828-23-000005_para-20221231.htm:18]** .                                                                                   |
| Doretha (DeDe) Lea  | Executive Vice President, Global Public Policy and Government Relations  | December 2019    | Doretha (DeDe) Lea has been serving as the EVP, Global Public Policy and Government Relations at Paramount Global since December 2019. She has held various government relations positions at Viacom since 1997  **[0000813828-24-000007_para-20231231.htm:16]** **[0000813828-23-000005_para-20221231.htm:18]** .                        |
| Julia Phelps        | Executive Vice President, Chief Communications and Corporate Marketing Officer | December 2019    | Julia Phelps has been the EVP, Chief Communications and Corporate Marketing Officer at Paramount Global since December 2019. She joined Viacom in 2005  **[0000813828-24-000007_para-20231231.htm:16]** **[0000813828-23-000005_para-20221231.htm:18]** .                                                                                  |
| Nancy Phillips      | Executive Vice President, Chief People Officer                           | December 2019    | Nancy Phillips has been the EVP, Chief People Officer at Paramount Global since December 2019. She previously held the position of EVP and Chief Human Resources Officer at Nielsen Holdings PLC  **[0000813828-24-000007_para-20231231.htm:17]** **[0000813828-23-000005_para-20221231.htm:18]** .                                       |
| George Cheeks       | President and Chief Executive Officer of CBS                             | April 29, 2024   | George Cheeks serves as the President and CEO of CBS and is part of the Office of the CEO at Paramount Global. He was appointed to this position on April 29, 2024  **[0000813828-24-000079_para-20240930.htm:41]** **[0000813828-24-000053_para-20240630.htm:38]** .                                                                     |
| Chris McCarthy      | President and Chief Executive Officer, Showtime/MTV Entertainment Studios and Paramount Media Networks | April 29, 2024   | Chris McCarthy serves as the President and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks. He was appointed as part of the Office of the CEO on April 29, 2024  **[0000813828-24-000033_para-20240429.htm:1]** **[0000813828-24-000079_para-20240930.htm:41]** **[0000813828-24-000079_para-20240930.htm:13]** .                                              |
| Brian Robbins       | President and Chief Executive Officer of Paramount Pictures and Nickelodeon | April 29, 2024   | Brian Robbins serves as the President and CEO of Paramount Pictures and Nickelodeon. He was appointed as one of the co-CEOs in the newly established Office of the CEO on April 29, 2024  **[0000813828-24-000079_para-20240930.htm:41]** **[0000813828-24-000073_para-20241008.htm:1]** **[0000813828-24-000053_para-20240630.htm:13]** .                                           |
| Caryn K. Groce      | Executive Vice President, Acting General Counsel and Secretary           | July 8, 2024     | Caryn K. Groce serves as the EVP, Acting General Counsel, and Secretary at Paramount Global. She has been in this role since at least July 8, 2024  **[0000813828-24-000046_form-42507072024.htm:4]** .                                                                                       |

23e373f426b21d2aa2b0d747c75e1ff1a050a0229a3a5f686ceff5a91d9f2a05

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | November 2010  **[0000813828-24-000079_para-20240930.htm:81]**  |
| End Date/Duration        | N/A             |
| Total Additional Amount  | $16.4 billion  **[0000813828-24-000079_para-20240930.htm:81]**  |
| Remaining Authorization  | $2.36 billion  **[0000813828-24-000079_para-20240930.htm:81]**  |
| Details                  | Most recent increase announced on July 28, 2016, bringing total availability to $6.0 billion  **[0000813828-24-000079_para-20240930.htm:81]**  |

f01742aef9f4b73f5725fd824ed377cecf911e8f18f06f51bf63f416c537f037

**Quarterly guidance for Q4 2024:**
- **D2C profitability**: expect a quarterly loss  **[PARA_3397562_6]**  (no prior guidance)  
- **TV Media advertising growth**: expected to be similar to Q3 2024 (2%)  **[PARA_3397562_6]**  (no prior guidance)  
- **D2C advertising growth**: double-digit growth  **[PARA_3397562_6]**  (no prior guidance)  
- **Paramount+ subscriber growth**: continued growth  **[PARA_3397562_6]**  (no prior guidance)

**Annual guidance for FY 2024:**
- **Licensing revenue**: expected to decline relative to 2023  **[PARA_3397562_6]**  (no change from prior “modest decline” guidance  **[PARA_3397562_4]** )  
- **Free cash flow**: expectations remain unchanged for 2024  **[PARA_3397562_6]**  (no change from prior guidance  **[PARA_3397562_4]** )  
- **Cost savings**: on track for $500M in annual run-rate cost savings by end of 2024  **[PARA_3397562_6]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Paramount+ domestic profitability**: on track for 2025  **[PARA_3397562_6]**  (no change from prior guidance  **[PARA_3397562_4]** )  
- **International D2C profitability**: expected to track 12–18 months behind domestic  **[PARA_3397562_6]**  (no prior guidance)  

807449fd1e52952edde0e7f15fe27e6aae2ff9a3ad7b72cc94289d505b3cb957

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP | 1970  **[0000813828-24-000007_para-20231231.htm:86]**    | Present  | Current auditor   |
```

7de361b6bf312de8701403784ddb686cfec791cbb3c23f5acadca48b0936b412

2fa8baf994d8988ff1aac65b760a9135ca77b2b9a0c2654c0c948bf96a709e59

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $6,731 million (−6% YoY)  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-24-000079_para-20240930.htm:33]** **[0000813828-24-000079_para-20240930.htm:48]**   
- TV Media: $4,298 million (−6% YoY)  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-24-000079_para-20240930.htm:33]** **[0000813828-24-000079_para-20240930.htm:48]**   
- Direct-to-Consumer: $1,860 million (+10% YoY)  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-24-000079_para-20240930.htm:33]** **[0000813828-24-000079_para-20240930.htm:48]**   
- Filmed Entertainment: $590 million (**−34%** YoY)  **[0000813828-23-000033_para-20230930.htm:24]** **[0000813828-24-000079_para-20240930.htm:33]** **[0000813828-24-000079_para-20240930.htm:48]**   
- Operating Income (EBIT): $337 million (−46% YoY)  **[0000813828-23-000033_para-20230930.htm:3]** **[0000813828-23-000033_para-20230930.htm:47]** **[0000813828-23-000033_para-20230930.htm:46]** **[0000813828-24-000079_para-20240930.htm:3]**   
- Net Income: $1 million (**−100%** YoY)  **[0000813828-23-000033_para-20230930.htm:3]** **[0000813828-23-000033_para-20230930.htm:47]** **[0000813828-23-000033_para-20230930.htm:46]** **[0000813828-24-000079_para-20240930.htm:3]**   
- EPS (Diluted): $0.04 (−91% YoY)  **[0000813828-23-000033_para-20230930.htm:3]** **[0000813828-23-000033_para-20230930.htm:47]** **[0000813828-23-000033_para-20230930.htm:46]** **[0000813828-24-000079_para-20240930.htm:3]**   

18d494c93401e864e45c078511bef03ca09856a9b4454158982cce8772b8f401

761e38c707924a58e2d6a7cd4062a19815621d9e173de529031221c863e89bf8

| Year | Amount Due (in millions) | Debt Type                     | Interest Rate | % of Total Debt                     |
|----------|------------------------------|------------------------------------|-------------------|------------------------------------------|
| 2025     | 125 **[0000813828-24-000079_para-20240930.htm:24]**                  | 4.75% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 4.75% **[0000813828-24-000079_para-20240930.htm:24]**     | 0.8% = (125 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2026     | 432 **[0000813828-24-000079_para-20240930.htm:24]**                  | 4.00% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 4.00% **[0000813828-24-000079_para-20240930.htm:24]**     | 3.0% = (432 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2026     | 432 **[0000813828-24-000079_para-20240930.htm:24]**                  | 3.45% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 3.45% **[0000813828-24-000079_para-20240930.htm:24]**     | 3.0% = (432 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2027     | 581 **[0000813828-24-000079_para-20240930.htm:24]**                  | 2.90% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 2.90% **[0000813828-24-000079_para-20240930.htm:24]**     | 4.0% = (581 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2028     | 994 **[0000813828-24-000079_para-20240930.htm:24]**                  | 3.375% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**       | 3.375% **[0000813828-24-000079_para-20240930.htm:24]**    | 6.8% = (994 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2028     | 994 **[0000813828-24-000079_para-20240930.htm:24]**                  | 3.70% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 3.70% **[0000813828-24-000079_para-20240930.htm:24]**     | 6.8% = (994 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2029     | 496 **[0000813828-24-000079_para-20240930.htm:24]**                  | 4.20% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 4.20% **[0000813828-24-000079_para-20240930.htm:24]**     | 3.4% = (496 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2030     | 829 **[0000813828-24-000079_para-20240930.htm:24]**                  | 7.875% Senior Debentures **[0000813828-24-000079_para-20240930.htm:24]**  | 7.875% **[0000813828-24-000079_para-20240930.htm:24]**    | 5.7% = (829 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2031     | 1,231 **[0000813828-24-000079_para-20240930.htm:24]**                | 4.95% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 4.95% **[0000813828-24-000079_para-20240930.htm:24]**     | 8.4% = (1,231 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2032     | 979 **[0000813828-24-000079_para-20240930.htm:24]**                  | 4.20% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 4.20% **[0000813828-24-000079_para-20240930.htm:24]**     | 6.7% = (979 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2033     | 428 **[0000813828-24-000079_para-20240930.htm:24]**                  | 5.50% Senior Debentures **[0000813828-24-000079_para-20240930.htm:24]**   | 5.50% **[0000813828-24-000079_para-20240930.htm:24]**     | 2.9% = (428 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2034     | 87 **[0000813828-24-000079_para-20240930.htm:24]**                   | 4.85% Senior Debentures **[0000813828-24-000079_para-20240930.htm:24]**   | 4.85% **[0000813828-24-000079_para-20240930.htm:24]**     | 0.6% = (87 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2036     | 1,072 **[0000813828-24-000079_para-20240930.htm:24]**                | 6.875% Senior Debentures **[0000813828-24-000079_para-20240930.htm:24]**  | 6.875% **[0000813828-24-000079_para-20240930.htm:24]**    | 7.3% = (1,072 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2037     | 76 **[0000813828-24-000079_para-20240930.htm:24]**                   | 6.75% Senior Debentures **[0000813828-24-000079_para-20240930.htm:24]**   | 6.75% **[0000813828-24-000079_para-20240930.htm:24]**     | 0.5% = (76 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2040     | 298 **[0000813828-24-000079_para-20240930.htm:24]**                  | 5.90% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 5.90% **[0000813828-24-000079_para-20240930.htm:24]**     | 2.0% = (298 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2042     | 535 **[0000813828-24-000079_para-20240930.htm:24]**                  | 4.50% Senior Debentures **[0000813828-24-000079_para-20240930.htm:24]**   | 4.50% **[0000813828-24-000079_para-20240930.htm:24]**     | 3.7% = (535 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2042     | 535 **[0000813828-24-000079_para-20240930.htm:24]**                  | 4.85% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 4.85% **[0000813828-24-000079_para-20240930.htm:24]**     | 3.7% = (535 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2043     | 2,397 **[0000813828-24-000079_para-20240930.htm:24]**                | 4.375% Senior Debentures **[0000813828-24-000079_para-20240930.htm:24]**  | 4.375% **[0000813828-24-000079_para-20240930.htm:24]**    | 16.4% = (2,397 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2044     | 887 **[0000813828-24-000079_para-20240930.htm:24]**                  | 5.25% Senior Debentures **[0000813828-24-000079_para-20240930.htm:24]**   | 5.25% **[0000813828-24-000079_para-20240930.htm:24]**     | 6.1% = (887 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2045     | 591 **[0000813828-24-000079_para-20240930.htm:24]**                  | 4.60% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 4.60% **[0000813828-24-000079_para-20240930.htm:24]**     | 4.0% = (591 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2050     | 949 **[0000813828-24-000079_para-20240930.htm:24]**                  | 4.95% Senior Notes **[0000813828-24-000079_para-20240930.htm:24]**        | 4.95% **[0000813828-24-000079_para-20240930.htm:24]**     | 6.5% = (949 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2057     | 644 **[0000813828-24-000079_para-20240930.htm:24]**                  | 6.25% Junior Subordinated Debentures **[0000813828-24-000079_para-20240930.htm:24]** | 6.25% **[0000813828-24-000079_para-20240930.htm:24]** | 4.4% = (644 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |
| 2062     | 989 **[0000813828-24-000079_para-20240930.htm:24]**                  | 6.375% Junior Subordinated Debentures **[0000813828-24-000079_para-20240930.htm:24]** | 6.375% **[0000813828-24-000079_para-20240930.htm:24]** | 6.8% = (989 / 14,620) * 100 **[0000813828-24-000079_para-20240930.htm:63]** **[0000813828-24-000079_para-20240930.htm:24]** |

39414a2313496ba6a8e3122654399a8f171b563bd90ec6c0b97419874a51e350

- Paramount Global experienced a **decrease of 2.8 million Paramount+ subscribers in Q2 2024** due to the **exit from its hard bundle partnership with Tving in South Korea**, signaling challenges in international streaming growth.  **[PARA_3397562_4]**
- The company recorded a **$6 billion noncash goodwill impairment charge** specific to its cable network reporting unit, driven by **declines in linear TV and the valuation implied by the Skydance transaction**, indicating troubles in its traditional cable business.  **[PARA_3397562_7]**
- Management expressed **uncertainty about future licensing revenue growth**, as they did not confirm if licensing will remain a growth driver after 2024, focusing instead on maximizing content on their own platforms and acknowledging timing dynamics affecting performance.  **[PARA_3397562_1]**

7d87243a7932827a688cf1ab0ed7db17304d97c12d5f511fffb45e9e66e57d30

- **Strong Financial Performance in Q1 2024:** Paramount delivered total company revenue growth of **6% to $7.7 billion**, and adjusted OIBDA grew **80% to $987 million**, reflecting improvements across all business segments.  **[PARA_3381352_4]**
- **Significant Growth in Direct-to-Consumer Segment:** Paramount+ subscription revenue grew over **50%**, adding **3.7 million subscribers** to reach a total of **71.2 million**; D2C adjusted OIBDA improved **44%** year-over-year.  **[PARA_3381352_4]**
- **Focused Strategic Plan and Experienced Leadership:** The company is finalizing a long-term strategic plan centered on maximizing hit content, strengthening the balance sheet, and optimizing the streaming strategy, led by seasoned executives with deep industry knowledge.  **[PARA_3381352_2]** **[PARA_3381352_5]** **[PARA_3381352_3]**

cdf5d6b1336102597d58bfe3a9caa4fc392a4ef6bd44b9c0b700bb6fed9a4ca0

- **Paramount Global expects significant earnings growth in 2024**, driven by improvements in their direct-to-consumer business. **Paramount+ is on track to reach domestic profitability in 2025**, a significant milestone for the company.  **[PARA_3375495_10]** **[PARA_3375495_3]**
- The company has a **strong content slate for both TV and streaming in 2024**, including popular franchises and new series, which is expected to drive subscriber growth, engagement, and revenues.  **[PARA_3375495_8]**
- **Paramount is seeing signs of stabilization and growth in the advertising market**, with healthy scatter premiums and growth in key categories like consumer products, quick service restaurants, and retail, benefiting their advertising revenue.  **[PARA_3375495_11]**

9f2255378b729074ca5181d4a9225bbe32082f01c28f050c11405c28b18c5bca

1. **Paramount+ Profitability and Sub Growth**  
   **Q:** How will Paramount+ profitability and sub growth trend?  
   **A:** Most of the year-over-year improvement in D2C profitability in 2024 will be driven by the domestic Paramount+ business.  **[PARA_3375495_10]**  While sub growth in 2024 will be lower than in 2023, we expect **very healthy Paramount+ revenue growth**.  **[PARA_3375495_8]**  Revenue is more important than subs, and we're feeling very good about the revenue growth trend on Paramount+.  **[PARA_3375495_8]**  We anticipate **domestic profitability in 2025**.  **[PARA_3375495_13]** 

2. **Programming Costs and Strikes Impact**  
   **Q:** How will programming costs evolve post-strikes?  
   **A:** Programming cost growth for Paramount+ in 2024 will be **significantly lower than the ARPU growth of over 20%**.  **[PARA_3375495_10]**  We plan to only spend about **50% of the strike savings** back in 2024, helping drive healthy free cash flow growth.  **[PARA_3375495_13]**  The **$1 billion charge** includes programming and restructuring costs, with about **$200 million** in restructuring.  **[PARA_3375495_10]** 

3. **Licensing Revenue Outlook**  
   **Q:** Will licensing revenue return to previous levels?  
   **A:** We expect licensing revenue to **grow in 2024**, as the impact from the strikes subsides.  **[PARA_3375495_9]**  Licensing was impacted last year, so this should be a more normal year, though likely back-half loaded.  **[PARA_3375495_9]**  Licensing helps drive both OIBDA and cash flow, contributing to our goal of delivering **free cash flow growth in 2024**.  **[PARA_3375495_13]** 

4. **M&A Interest and Strategic Options**  
   **Q:** Any comments on M&A and strategic options?  
   **A:** We're always looking for ways to **create shareholder value**, but we won't comment on speculation or timelines.  **[PARA_3375495_12]**  We're focused on disciplined execution to return to **significant earnings growth** this year.  **[PARA_3375495_13]** 

5. **Distribution Contracts and Bundling Strategy**  
   **Q:** Thoughts on upcoming distribution renewals and bundling?  
   **A:** Our content offering is strong and **must-have** for U.S. pay-TV consumers.  **[PARA_3375495_12]**  We have many levers in distribution deals, including linear networks and streaming products.  **[PARA_3375495_12]**  We're big believers in bundling, which can strengthen the consumer proposition, drive subscribers, reduce churn, and lower subscriber acquisition costs.  **[PARA_3375495_12]**  We have substantial experience with bundling in streaming, both internationally and with partners like **Walmart+** in the U.S..  **[PARA_3375495_12]** 

6. **Sports Streaming JV and Competitive Positioning**  
   **Q:** How does the sports JV affect your competitive stance?  
   **A:** We believe an integrated sports entertainment strategy creates value, as consumers engage with both sports and entertainment content.  **[PARA_3375495_9]**  Our sports offerings like **NFL, NCAA, and UEFA** are locked up into the next decade, providing a sustainable advantage.  **[PARA_3375495_9]**  The sports JV lacks a full complement of sports, missing half the NFL and other key sports, making it less ideal for true fans.  **[PARA_3375495_9]** 

7. **Advertising Market Trends**  
   **Q:** What are the current advertising market trends?  
   **A:** We're seeing signs of **stabilization** in domestic advertising, with healthy scatter premiums.  **[PARA_3375495_11]**  Sports remains a bright spot, and we're seeing growth in categories like consumer products, quick service restaurants, and retail.  **[PARA_3375495_11]**  Digital ad revenue is strong, up **14% in the fourth quarter**.  **[PARA_3375495_11]**  We continue to enhance our capabilities in data and measurement to strengthen our position in the digital space.  **[PARA_3375495_11]** 

8. **Licensing Paramount+ Originals to Third Parties**  
   **Q:** Will you license Paramount+ originals to third parties?  
   **A:** While we recognize the value of our content and know others do too, we continue to believe that building a **scaled streaming business** is the right path.  **[PARA_3375495_13]**  We see optionality in licensing but believe using our content to drive **asset value creation** in the form of Paramount+ is the right plan A.  **[PARA_3375495_13]** 

40ff079175630696e164331c3d87ff8961e5f0a34c70ef0c0e9766488e62e511

1. **Paramount+ Profitability**  
   **Q:** When will Paramount+ be profitable?  
   **A:** The company aims for **domestic profitability for Paramount+ in 2025**, focusing on a full-year positive result. They are exploring strategic partnerships and joint ventures to accelerate profitability by improving scale, enhancing content offerings, reducing costs, and driving long-term value.  **[PARA_3397562_8]** **[PARA_3397562_12]** 

2. **Cost Savings Plans**  
   **Q:** Can you detail the $500M cost savings and Skydance's $2B?  
   **A:** They are implementing **$500 million** in immediate cost savings, primarily through headcount reductions. This is just the first step; they are also pursuing additional significant cost reductions beyond headcount, which won't all occur simultaneously. These plans contribute to the initiatives comprising the **$2 billion** referenced in the Skydance transaction.  **[PARA_3397562_10]** 

3. **Goodwill Impairment Charge**  
   **Q:** What caused the $6B goodwill impairment?  
   **A:** The **$6 billion noncash goodwill impairment charge** is due to linear declines and the value implied by the Skydance transaction. Accounting rules require reconciling the value of individual reporting units with the enterprise value implied by the transaction, resulting in the charge specific to the cable network reporting unit.  **[PARA_3397562_7]** 

4. **Content Licensing Strategy**  
   **Q:** Will licensing remain a growth driver post-2024?  
   **A:** Licensing remains a **compelling business**. The company focuses on maximizing first-run content on its own platforms but continues to license to third parties to drive more revenue, reach, and relevance. Despite timing dynamics due to strikes, they believe long-term licensing will continue to be a growth driver.  **[PARA_3397562_13]** 

5. **Charter Agreement Impact**  
   **Q:** How does the Charter deal affect subscribers and revenue?  
   **A:** Subscribers who activate Paramount+ through Charter will be counted as Paramount+ subscribers. Revenue from such deals will be allocated between the TV Media segment and the D2C segment. The revenue received is not contingent on activation; it's part of the overall economics of the arrangement with the distributor.  **[PARA_3397562_10]** **[PARA_3397562_11]** 

6. **Cash Flow Outlook**  
   **Q:** What's the outlook for free cash flow and leverage?  
   **A:** The company expects to deliver **growth in free cash flow in 2024**, alongside significant growth in adjusted OIBDA, with no changes to prior expectations for the year.  **[PARA_3397562_9]** 

7. **International Streaming Strategy**  
   **Q:** Any updates on international streaming plans?  
   **A:** While maintaining a global footprint, they are exploring options to optimize profitability. This may include strategic partnerships or joint ventures to reduce costs and drive greater profits, focusing on markets where they can achieve better scale.  **[PARA_3397562_9]** 

8. **Sports Rights Strategy**  
   **Q:** Will you pursue new sports rights?  
   **A:** Satisfied with their current sports portfolio, including recent deals with **EFL** and **Serie A**, they remain opportunistic and will consider acquiring additional rights that enhance offerings for both broadcast and streaming.  **[PARA_3397562_13]** 

6316f8313a0805d8a7d7ce3c3ced8b13521640de5621b4f05767fbb83444ac39

- Paramount anticipates **lower subscriber growth in 2024**, potentially losing **"a couple of million subs"** due to exiting some international partnerships and reducing local content and marketing, which could impact its streaming business growth.  **[PARA_3375495_8]**
- The company is incurring a **$1 billion charge in Q1 2024**, including **approximately $200 million** in restructuring charges and programming charges related to international strategy changes, indicating possible difficulties in its international operations.  **[PARA_3375495_10]**
- **Advertising revenue declined 11%** in Q4 due to strikes and political factors, and despite signs of stabilization, the ad market remains challenging with increased competition in Connected TV and international currency headwinds, which may continue to pressure revenues.  **[PARA_3375495_11]**

9b7d22a83531f3dc505146f6b2bddb373b90c7261a303f14ea808e8a14a798f2

1. **DTC Profitability Timeline**  
   **Q:** When will overall DTC be profitable, including international?  
   **A:** Management expects the domestic DTC business to achieve profitability next year, with international profitability trailing by **12 to 18 months**. Significant progress has been made this year with subscriber growth, ARPU improvements, strong digital advertising growth, and marketing efficiencies, setting them up well for **2025**.  **[PARA_3407232_9]** 

2. **Impact of Dropping Nielsen**  
   **Q:** Has dropping Nielsen data affected advertising revenue?  
   **A:** There has been **no adverse impact** on ad revenue from dropping Nielsen, and none is expected in Q4. The decision was about ensuring the economics make sense amid declining linear audiences. Management recognizes Nielsen's value but won't pay fees exceeding the ad revenue generated by certain networks.  **[PARA_3407232_11]** 

3. **International Underreported Ad Revenue**  
   **Q:** What was the impact of underreported international ad sales?  
   **A:** The underreported international ad revenue in Q3 was approximately **$50 million**, slightly larger than in Q2. The next quarter's forecast assumes **no further true-up** due to underreporting.  **[PARA_3407232_10]** 

4. **Potential Streaming Partnerships**  
   **Q:** Will you consider deeper streaming integrations beyond bundles?  
   **A:** While confident in their stand-alone position with Paramount+, management remains open to strategic partnerships that drive value. They currently have successful partnerships and bundles with companies like **Walmart** and **Delta Airlines**, and continuously evaluate opportunities to enhance value.  **[PARA_3407232_12]** 

5. **Content Cost Allocation**  
   **Q:** How are content costs allocated between DTC and TV media?  
   **A:** Content costs are allocated based on the relative value of content windows on each platform. As more viewership moves to streaming, more costs are allocated to DTC and less to linear TV. This approach applies to sports, movies, and library content.  **[PARA_3407232_12]** 

6. **DTC Marketing Efficiencies**  
   **Q:** Can you expand on DTC marketing efficiencies?  
   **A:** Marketing efficiencies stem from a diverse subscriber base across multiple channels, including direct channels, platform partners, and bundles. This diversified approach reduces acquisition costs and churn, contributing to improved profitability.  **[PARA_3407232_14]** 

7. **Charter Partnership Impact**  
   **Q:** What is the impact of the Charter partnership on DTC?  
   **A:** The Charter bundle has begun contributing to domestic subscriber growth, though it's still early. Management is pleased with the uptake and expects the contribution to grow over time, enhancing both subscriber acquisition and retention.  **[PARA_3407232_13]** 

8. **TV Media Employee Count**  
   **Q:** How many employees are in TV Media after cost cuts?  
   **A:** There are about **6,000-plus domestic** employees and **3,000-plus internationally** in TV Media, including those in sports production and local stations. Management continues efforts to make operations more efficient.  **[PARA_3407232_11]** 

9b980b9c41270366ee8374f5cf040277155c1a7ee9dd164ab179b922a76e95a7

- *Bear Case for $PARA:**
- **Direct-to-consumer (DTC) advertising growth of 18% lags behind a 46% increase in viewing hours**, indicating potential monetization challenges in converting increased engagement into advertising revenue.  **[PARA_3363764_10]**
- The **elimination of carriage of some channels in new distribution agreements** could negatively impact revenue from traditional linear TV, as discussed in concerns about the Disney and Charter agreement and its implications for Paramount.  **[PARA_3363764_8]**

ae5a4cbba224f17a426552a8da2b4112377e1e39d836b2cf2d91d738e710cbbb

- **Paramount+ with Showtime integration is accelerating growth and profitability**, with **direct-to-consumer losses narrowing by 30% in the quarter**, putting the company **ahead of plan to reach profitability**.  **[PARA_3363764_14]** **[PARA_3363764_15]**
- **A strong and balanced content slate** is driving success across platforms, with **five titles opening at #1 this year** and franchises like **Turtles and PAW Patrol** contributing to revenue in theatrical releases, streaming, and merchandise. The company plans to increase its release volume to **up to a dozen films in a couple of years**, focusing on both franchises and new ideas.  **[PARA_3363764_9]**
- **Sports content is integral to Paramount's strategy**, with a robust portfolio including the **NFL, college football (Big 10), NCAA, and golf (the Masters)**. **Long-term deals are locked in through 2030 and beyond**, contributing significantly to both distribution and advertising revenue.  **[PARA_3363764_11]**

4d8819524877876f2cf363fd5b709b27fc0a7eaa405c97da15777e3c556b825b

- **Domestic ARPU was negatively impacted by lower-than-expected engagement due to the lagging effect of last year's strikes**, which constrained the availability of new programming.  **[PARA_3381352_4]**
- **TV Media affiliate revenue declined 3% year-over-year, reflecting overall Pay-TV ecosystem declines**, partially offset by pricing.  **[PARA_3381352_4]**
- **The company is undergoing leadership changes, with Bob stepping down and being replaced by a new Office of the CEO**, which could create uncertainty in the company's direction.  **[PARA_3381352_5]** ,  **[PARA_3381352_0]** ,  **[PARA_3381352_1]**

ad3af1512f44e476af4a75f007247a4022b9dd791c9916b062e769f11cd037d7

- **Paramount+ has amassed 68 million global subscribers** and is **on track to achieve domestic profitability in 2025**, exploring strategic partnerships and joint ventures to **increase scale, improve content offering, reduce costs, and drive long-term value and profits**  **[PARA_3397562_8]** .
- The company's **sports strategy is driving growth in both broadcast and streaming audiences**; for instance, **NFL on CBS viewership increased 5% year-over-year**, and the **streaming audience on Paramount+ grew by more than 50%**, showcasing the effectiveness of delivering **unduplicated audiences across platforms**  **[PARA_3397562_8]** **[PARA_3397562_13]** .
- Paramount is leveraging its **powerful content library** by continuing to **license content to third-party platforms**, which **drives more revenue, reach, and relevance**, while also **increasing demand on their own platforms** by introducing content to new audiences  **[PARA_3397562_13]** .

55b17f01a8cd5b755a27ac0c9d418f1b5ff0baaa78b8b0bdd539af2b4504ad4d

Paramount Global (PARA)

Financials